I am a member of a start-up company here in Minnesota I am pleased to hear the SEC proposal to move forward with the exemptions regarding Crowd funding. I strongly believe that this proposal will allow entrepreneurs like me to raise capital that will give us the power to successfully develop our product and bring it to the market. Crowd-funding start-ups like ours will have the better chance of surviving because we will have the finances to help us in developing our products. As an entrepreneur I believe Crowd-funding will ease the pressure of Start-Ups going to banks for loans, or racking up debt via credit cards just to develop a product.
As many legitimate start-Ups the challenge has always been securing funding to bring the company products to the market. As an entrepreneur I strongly urge the SEC. We have been to banks asking for advice on how to secure business loans and so far have been turned down by many banks because we lack historical financial statements and assets to use as collaterals. So I believe that this proposal will allow new and established entrepreneurs opportunities to bring their ideas or products to life and help rebuild this great country.
I believe the proposal will overall benefit many start-ups and the idea of financial audit after reaching $500k through crowd-funding may be a challenge because it will require small start-ups to spend more time conducting financial audit instead of focusing on developing their products and operations. I am certainly hoping the proposal will be adopted soon as my start-Up company is getting ready to solicit investors to raise capital. I look forward to seeing the SEC adopt this proposal and allow companies to start raising capital.